A regression analysis for unit costing at NAVSUP activities
Terry, Glenn Edward
McMasters, Alan W.
Barr, Donald R.
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Unit costing is one of the important issues being faced by the Department of Defense (DoD). the ability to predict the cost required to generate a productive unit output is necessary because of current guidelines regarding the management of limited resources available to the DoD. This thesis investigated the feasibility of developing such forecasts for the Naval Supply Systems Command (NAVSUP) using regression analysis. The analysis met with little success, most probably because the limited available data has only been recorded over the last 21 months due to the newness of the requirements of unit costing. The one positive result of the analysis was the discovery that some of the cost centers analyzed are affected by seasonality. In addition, the data for the last nine months appears to be better than the previous 12. This may be due to cost centers becoming accustomed to monitoring costs and outputs more precisely than has ever been done before.
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